A mobile carrier decides to introduce a new cellular phone at a high price.This is known as
A) market penetration.
B) everyday low pricing.
C) competitor pricing.
D) loss leader pricing.
E) price skimming.

Question

Quizplus · Accepted Answer

The introduction of a new product at a high price is known as price skimming. This strategy aims to attract early adopters and those willing to pay a higher price for the latest technology. As demand for the product stabilizes, the price is gradually lowered to attract a wider audience. This approach works well for products with unique features or benefits that differentiate them from competitors.

A Mobile Carrier Decides to Introduce a New Cellular Phone